POLAR CAPITAL GLOBAL HEALTHCARE TRUST - Overview

This is a LSE-listed UK investment trust with a fixed life expiring in January 2018, established to generate capital growth and income by investing in a global portfolio of healthcare stocks. It has a barbell strategy combining an Income Portfolio comprising large cap pharmaceutical companies and a Growth Portfolio of medical devices and services companies. Initially the two sub portfolios will be weighted 80% income to 20% growth. Target is 3p dividend in year 1 – paid quarterly.

Risks

Before investing make sure you have understood the risks relevant to the fund by reviewing our Risk Warnings section. Further information on the risks are contained in the fund's Key Investor Information Document, which we make available to you before you make a decision to invest, alternatively it is available on request.

Investment process

The investment process is primarily based on bottom-up fundamental analysis. The global universe of listed healthcare securities is c.2,900 companies. The Manager uses a qualitative filter consisting of six key criteria to build up a watch-list of securities that is monitored on a regular basis. The coverage of securities is shared across the investment team based on sub-sector and geography. Due diligence is then carried out on the individual securities on the watch-list. Performance compared against the MSCI ACWI/Health Care Index (total return, in Sterling), although it will not seek to replicate the index in constructing its portfolio.

Portfolio details

Constraints

Max 15% borrowing; max 10% in a single holding.
There are some limits placed on the portfolio but these could result in significant divergences from the benchmark from time to time.

Average monthly relative returns

Bestinvest MRI

12/13

13/14

14/15

15/16

16/17

3 years

5 years

Career

3 years

5 years

Career

–

–

–

-0.07%

0.35%

–

–

-0.24%

–

–

38.20%

Performance figures are based on the average of monthly
percentage returns relative to the benchmark index.

Gareth Powell / Daniel Mahony

Powell and Mahony are portfolio Manager’s and co-head’s of the Manager's Healthcare Business unit at Polar Capital LLP. Powell has over 10 years' investment experience in the healthcare sector, with over 8 years as a portfolio Manager. He joined Polar Capital in 2007 and is currently co-manager of the Polar Healthcare Opportunities Fund.
Mahony has more than 11 years' investment experience in the healthcare sector, with over 2 years as a Portfolio Manager and 9 years as a sell-side analyst. Prior to joining Polar Capital, he was Head of the European Healthcare Research Team at Morgan Stanley, which covered the European Biotechnology, Medical.

Track record

Gareth Powell / Daniel Mahony has 2.7 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been -0.24%.
During the worst period of relative performance (from May 2009 - May 2011) there was a decline of 14% relative to the index. The worst absolute loss has been 16%.

Periods of worst performance

Absolute

-16%
(March 2010 - July 2010)

Relative

-14%
(May 2009 - May 2011)

Other funds managed

Start Date

POLAR CAPITAL GLOBAL HEALTHCARE TRUST

Jun 2010

POLAR CAPITAL HEALTHCARE BLUE CHIP S GBP

Sep 2014

POLAR CAPITAL HEALTHCARE OPPORTUNITIES R GBP

Apr 2009

Sector record since
May 2009 (3 yrs)

About the MRI

Our unique indicator: the Bestinvest Manager Record Index (MRI)
measures the likelihood that the fund manager is adding value through their decisions.
It is based on their performance record over the course of their career, adjusted
for the amount of risk taken. MRI is an important contributor to our fund rating
system but it is also vital to take account of qualitative factors. It is also very
important to select funds to form a cohesive portfolio with an appropriate overall
risk level.

The value of your investment can go down as well as up, and you can get back less than you originally invested.

Past performance or any yields quoted should not be considered reliable indicators of future returns. Restricted advice can be provided as part of other services offered by Bestinvest, upon request and on a fee basis. Before investing in funds please check the specific risk factors on the key features document or refer to our risk warning notice as some funds can be high risk or complex; they may also have risks relating to the geographical area, industry sector and/or underlying assets in which they invest. Prevailing tax rates and relief are dependent on your individual circumstances and are subject to change.